Have you sat down and given serious consideration to your financial future? I understand that people are busy these days, and you may reason, “Well, I’m young now, and I’ll have time later.” You are completely incorrect. Never is it too early to begin saving for retirement!
They claim that if a 25-year-old saves $2.00 each day ($60.00 per month), by the time he reaches 65, he would have accumulated a million dollars. However, what is a million dollars worth nowadays? With growing housing and cost of living costs, it’s almost chump change.
As a result, you must create a budget in order to save for the future. Don’t anticipate Social Security to kick in; they’re currently experiencing difficulties – let alone when you reach that age!
The following are some ideas to assist you in saving for the future and retirement:
- Create a spreadsheet outlining your monthly revenue. Include all of your monthly income, from salary to gambling profits, child support received alimony and any other source of income.
- Next, compile a list of your expenditures. Make a list of everything you spend, from utilities to mobile phone bills. Additionally, violin lessons for your youngster, pet expenditures – everything.
- Take your costs and subtract them from your income. Hopefully, you come out on top! If not, you’ll need to make prudent selections about which costs are necessary and which are a luxury. Is a mobile phone really necessary, or is it only convenient? Self-discipline today and you will thank yourself afterward!
- Repeat this procedure for many months. And then, at the end of each month, determine where your unneeded money went. Did you dine out at least once a week? Did you purchase your lunch rather than preparing it at home?
- Set aside 10% of your salary in a savings account. This is the “rule of thumb” used by investors to determine how much money you should save each month. If you earn $3000 every month, you should save $300. First and foremost, compensate yourself!
- Consider alternatives to saving. Consider contributing to a 401k or IRA savings plan. Consult your banker to determine which one best suits your demands and financial position.
That is indeed all there is to it! Never deplete your funds on frivolous expenditures such as a new pair of shoes or a movie ticket. That is for your benefit in the future! If, however, your vehicle requires a new gearbox, this nest egg is available to you!
It just requires a great deal of self-discipline and a desire to achieve financial freedom. Simply follow these simple steps and you’ll be on your way!
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